Samsung today said its 5G network business is expected to shrink in South Korea, its home market, but expand overseas in 2020.
Samsung did not reveal the number of 5G network deals it won till now. Samsung is a leader in 5G network business in South Korea.
Ericsson CEO Borje Ekholm earlier revealed that said the telecom network maker is a leader in 5G network business with 78 commercial 5G agreements with unique operators and 24 live 5G networks on four continents.
Finland-based Nokia in January said it signed 63 commercial 5G contracts, positioning it as a global leader in the delivery of end-to-end 5G solutions.
Samsung said it aims will expand its presence in the 5G network equipment market in the United States, while continuing to look at the possibility of entering the European market.
This week Britain granted Huawei a limited role in developing the country’s 5G mobile network, frustrating a global attempt by the United States to exclude the Chinese telecoms giant from the West’s next-generation communications, Reuters reported.
Samsung, announcing the fourth quarter revenue performance, said that it will be expanding its core competencies in 5G network business and invest in the infrastructure required for additional growth.
Samsung said its domestic sales slowed in Q4 2019 as 5G network sales concentrated in the first half. Samsung said its overseas 5G network sales increased, including in the US and Japan.
5G NR RAN investments will cross $100 billion. 5G NR small cell market will approach 10 percent to 20 percent of overall 5G NR market. Macro and small cell transceiver shipments will reach 0.7 billion. Millimeter Wave 5G NR will account for one sixth of overall small cell investments, Stefan Pongratz, analyst with the Dell’Oro Group, said.
Samsung said on Thursday it expects earnings to bounce back in 2020 after a fourth-quarter slump, helped by a gradual recovery in memory chip demand from data center customers and 5G smartphone makers.
The South Korean company posted operating profit of 7.16 trillion won or $6.13 billion, down 34 percent. Net profit of Samsung fell 38 percent to 5.2 trillion won, with revenue easing 1 percent to 59.9 trillion won.
“Looking ahead to 2020, Samsung expects improvements in overall business performance but also sees continued uncertainties in the business environment,” Samsung said in a statement. It didn’t identify particular issues that could affect its operations.
Samsung rival Apple earlier used a wider-than-normal prediction range for a revenue forecast citing uncertainty created by the coronavirus outbreak in China which economists fear could hurt the global economy.
For first-quarter 2020, Samsung said it expected earnings to fall reflecting low seasonal demand.
Fourth-quarter operating profit more than halved to 3.45 trillion won in Samsung’s chip division, while mobile division profit improved nearly 67 percent to 2.52 trillion won.
Samsung said the pace of 5G smartphone expansion and its effects should be monitored closely, but the company sees demand picking up around mass-market models as major manufacturers expand their 5G lineups.